Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

E Business Cone :: My Subscriptions b. Calculate the goodwill to be reported for this acquisition. Enter answer in thousands (hint - $80 million equals

image text in transcribed
image text in transcribed
E Business Cone :: My Subscriptions b. Calculate the goodwill to be reported for this acquisition. Enter answer in thousands (hint - $80 million equals $80,000 in thousands). $ 37,550 X (in thousands) Support 0 0 c. Prepare the journal entry Brightcove makes to record the acquisition. Enter answers in thousands (hint - $80 million equals $80,000 in thousands). General Journal Description Debit Credit Current assets OX Plant and equipment 07 Licenses and trademarks Customer contracts OX 0 Brand names OX Favorable leases OX Developed technology OX 0 In-process R&D OX Goodwill OX Current liabilities 0 x Long term liabilities 07 Cash 0 07 07 O 07 OX 0 OX Check + C mybusinesscourse.com/platfon/mod/quiz/attempt.php?attempt=39443... Business Course My Subscriptions Support Brightcove, Inc. acquires Ciber, Inc. for $80 million in cash and accounts for the acquisition as a merger. Ciber's balance sheet at the date of acquisition is as follows (in thousands): Book Value Fair Value Current assets $400 $250 Plant and equipment 12.000 5,000 Licenses and trademarks 5.000 8,000 Total assets $17,400 Current liabilities $800 800 Long-term liabilities 10,000 9,500 Capital stock 8,000 Retained earnings (1.400) Total liabilities and equity $17.400 Brightcove hires a consultant to identify and value any previously unreported intangible assets attributable to Ciber at the date of acquisition. The consultant identifies the following intangibles: (in thousands) Fair Value Customer contracts $2.000 Assembled workforce 25,000 Brand names 3.000 Leases at rents below current market 500 Developed technology 200 in-process research and development 1,000 Future cost savings from elimination of duplicate assets 400 Additional expected revenues from bundling products 800 06 10:56 AM 9/16/2020 insert D 8 SA

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions